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For first-time car buyers, one of the most daunting parts of negotiating a good deal right now is interest rates.The average auto loan rate for someone with excellent credit is 5.25%, according to ...
In Maryland, the average APR for a used car loan is 7.10%, while in Mississippi, it’s 13.40%. See how the average used car loan rates in your state compare. Check Out: These 10 Used Cars Will ...
As with other types of loans, the overall cost of a car loan comes down to one major factor: the annual percentage rate. The APR includes both interest and lender fees, expressed as a percentage.
For example, with a loan of $15,000, an APR of 5.00% and a term of 5 years, or 60 months, the total interest would be $15,000 x 0.05 x 5, which equals $3,750.
The borrower then pays off the financial institution the same as for a direct loan. [citation needed] Typically, the indirect auto lender will set an interest rate, known as the "buy rate". The auto dealer then adds a markup to that rate, and presents the result to the customer as the "contract rate".
Average car loan interest rates impact the auto loan you qualify for, and understanding auto loan interest and your credit score can help you make a smart buy.
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